What is the full form of PSU ?

What is PSU?

Public Sector Undertakings are the names given to state-owned businesses in India. Public authorities establish PSUs to carry out businesses under their brand. These government-owned businesses are more focused on building the country and boosting the economy of the country than on maximising profit.

The growth of the public sector has achieved national objectives, including addressing regional imbalances, boosting public coffers, and fostering small businesses, among others. However, things have improved as a result of the public sector's shifting role and new regulations, such as the elimination of inefficiency and financial risks. A significant portion of the Indian economy is made up of public sector firms and services, which offer goods and services that are beneficial to the entire community. The focal government or the state government, or partially by the focal government and slightly by the state government, owns the majority of the organisational value (51% or more) in PSUs.

All PSUs are examined by the CAG. It has the authority to select the Auditor and give him instructions on how to properly conduct a record review of a PSU.

History of PSU

  • India became independent in 1947 as a largely rural country with a precarious industrial foundation.

  • Published in 1948, the first Industrial Policy Resolution gave a thorough explanation of the strategy and directive for industrial development.

  • The establishment of state-owned businesses was emphasised in both the 1956 Industrial Agenda Resolution and India's second five-year plan (1956–1961) to promote Nehru's national industrialization policy.

  • Nehru's idea was carried out by Dr. V. Krishnamurthy, who is revered as the founder of India's public sector enterprises.

PSUs category

PSU can be classified into three groups

Public Sector Banks (PSBs), Central Public Sector Enterprises, and Public Sector Enterprises (CPSEs)


In the case of central public sector undertakings, the vice chairperson, deputy managing director, or co-chief executive officer, as well as the head of the board of directors, also known as the chairperson, managing director, or chief executive officer, are Group 'A' gazetted officers appointed by the President of India. Executive directors and C-level executives are other names for these people. Officers and staff who work for public sector undertakings, subsidiaries of those undertakings, and divisions of those undertakings are also considered gazetted officers and full-fledged government employees.

List of Central PSUs

PSUs in India are broken down into three groups. They are Miniratna, Maharatna, and Navratna. Additionally, it's crucial to ensure that every sector has the same level of autonomy to compete on a global scale.

List of 12 Maharatna CPSUs

  • Gas Authority of India Limited

  • Steel Authority of India Limited

  • Power Finance Corporation Limited

  • Hindustan Petroleum Corporation Limited

  • Power Grid Corporation of India

  • Oil and Natural Gas Corporation

  • National Thermal Power Corporation

  • Bharat Heavy Electricals Limited

  • Rural Electrification Corporation Limited

  • Coal India Limited

  • Indian Oil Corporation Limited

  • Bharat Petroleum Corporation Limited

List of 12 Navratna CPSUs

  • National Buildings Construction Corporation

  • National Mineral Development Corporation

  • Mahanagar Telephone Nigam Limite

  • Container Corporation of India

  • Hindustan Aeronautics Limited

  • National Aluminium Company

  • Rashtriya Ispat Nigam Limited

  • Shipping Corporation of India

  • Bharat Electronics Limited

  • Engineers India Limited

  • NLC India Limited

  • Oil India Limited

List of 14 category 1st Miniratna

  • Central Mine Planning & Design Institute Limited

  • Chennai Petroleum Corporation

  • Bridge and Roof Company

  • Bharat Sanchar Nigam Limited

  • Central Electronics Limited

  • Cochin Shipyard

  • Bharat Dynamics Limited

  • Bharat Earth Movers Limited

  • Braithwaite & Co.

  • Balmer Lawrie

  • Central Warehousing Corporation

  • Central Coalfields Limited

  • Bharat Coking Coal Limited

  • Cotton Corporation of India Limited

List of Profit-Making PSUs

S. No. Name of CPSU Net profit Share (%)
1. Steel Authority of India Ltd. 3,542.72 2.83
2. GAIL (India) Ltd. 3,653.84 2.92
3. Mahanadi Coalfields Ltd. 9,223.73 2.96
4. Indian Oil Corporation Ltd. 3,954.62 3.16
5. South Eastern Coalfields Ltd. 4,098.68 3.28
6. Bharat Heavy Electricals Ltd. 7,039.96 5.63
7. NMDC Ltd. 7,265.39 5.81
8. Coal India Ltd. 3,709.51 6.45
9. NTPC Ltd. 8,065.10 7.37
10. Oil & Natural Gas Corporation Ltd. 25,122.92 20.08
Total 75,676.47 60.49
Net profit of PSUs 1,25,115.84 100.00

List of PSUs in loss

S. No. CPSE Name Net loss Share %
1 HCL 569 1.3
2 BPRL 915 2.0
3 MTNL 3,696 8.2
4 BSNL 15,500 34.6
Other CPSEs 4,094 9.1
Net Loss of PSUs 44,817 100


In this article, we have discussed The government establishing PSUs under its name and guidelines for conducting business. Such state-owned businesses are less concerned with making a profit and much more focused on nation-building initiatives and growing the economy of the country.


Q1. What are PSU's advantages?

Ans. Some important advantages provided to PSU employees include gasoline prices that change according to the price of the fuel on the market, newspaper pricing, furniture allowances, clothing allowances, gadget allowances, good housing facilities, and many more.

Q2. Which PSU is the most successful?

Ans. The PSU with the greatest revenue of Rs 1,058 crore and profit of Rs 332.20 crore was KMML.

Q3. Which public sector in India is the largest?

Ans. The Indian Railway is the largest undertaking and the third-largest in the world. It is also the greatest employment in the nation.

Updated on: 14-Apr-2023


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